WH Smith PLC on Wednesday said it expects to report a substantial revenue increase for its recently completed financial year, as passenger numbers supporting its Travel business continue to recover from the Covid-19 pandemic.

The London-based retailer operates on UK high streets as well as in travel locations such as airports and train stations globally.

It said the outcome for the financial year that ended August 31 will be in line with the upgraded expectations set back in May.

Revenue increased 28% in the recent year. This was driven by a 42% surge in revenue for its Travel unit, while High Street sales were down 1%.

On a like-for-like basis, revenue rose by 18%, with Travel up 27% and High Street up 1%.

WH Smith said the High Street business performed in line with expectations, and the group continues to focus on cost efficiencies and the return on space.

Travel revenue increased 75% in the first half of financial 2023, slowing to a 23% rise in the second ‘as passenger numbers [continued] their positive trajectory’. Like-for-like revenue for each period was up 48% and 15%, respectively.

WH Smith said the slower annual increase in the second half of financial 2023 ‘reflects the much stronger passenger numbers in the second half of our 2022 financial year compared to the first half of 2022, which included the impact from the Omicron variant’.

In the UK, WH Smith said Travel revenue rose 36% over the full year, or by 30% like-for-like. In North America, it increased by 31%, or 11% like-for-like, while revenue for the rest of the world rose by 98%, or 53% on a like-for-like basis.

WH Smith in particular reported ‘continued strength’ in sales to air passengers during the peak summer holiday season, with its hospital stores performing well and rail station venues showing resilience despite repeated train worker strikes.

WH Smith opened 20 new stores, 8 of which are in hospitals, during financial 2023 and expects to open another 15 during the current financial year. Outside the UK, it expects to open over 40 new stores in North America and 25 in other countries.

WH Smith shares were down 5.6% at 1,401.00 pence in London on Wednesday.

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